[Protests of Cancellation of Army RFP for Preparation and Revision of Manuals]

B-221430,B-221430.2: Mar 14, 1986

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Two firms protested the Army's cancellation of a solicitation for the preparation and revision of an indefinite quantity of manuals, contending that: (1) the anticipated reduction in funding and maximum quantities was not a substantive change to the solicitation; (2) the solicitation cancellation was arbitrary and capricious; and (3) it was unlikely that a reduced quantity of manuals would have an effect on the outcome of the procurement. GAO held that: (1) contracting agencies have broad discretion in determining when it is appropriate to cancel a solicitation; (2) a contracting officer only needs a reasonable basis for cancellation after receipt of proposals; (3) the Army believed that the award would prejudice other prospective bidders who might want to compete for the preparation and revision of a reduced quantity of manuals; (4) the possibility of additional small business competition provides a reasonable basis for solicitation cancellation; and (5) since the Army properly cancelled the solicitation, there was no legal basis to award one of the protester's proposal preparation costs. Accordingly, the protests and claim for proposal preparation costs were dismissed.